A. Changes in local regulatory climate have spurred entrepreneurial activity to address local health conditions through innovation.

i. Jordan Pharmaceutical Manufacturing Company – claimed its 30th patent in 2005 for its innovative efforts. The company earned $2.7 million from sale of its patented technology in 2005 and in 2006 earned $3.9 million.

ii. Triumpharma – launched in 2003, has 4 innovative drug formulations – patent applications have been submitted – ready to license to international manufacturer-distributors, and 6 more innovative drug formulations are under development.

B. If Oxfam’s claim that IP reforms have cost Jordan $6.3 to $22.04 million in higher prices (claim refuted later in the paper) is true, the Jordan Pharmaceutical Manufacturing Company alone has earned more money from its R&D efforts than the low-end of Oxfam’s cost estimate.

2. Oxfam suggests that IP reforms have prevented local generic competition to the detriment of local industry as well as Jordanian society.

Ryan responds:

a. Before IP reforms, Jordanian industry dominated the local pharmaceutical market of about $70 million.

b. Economic reforms have increased the size of the pharmaceutical market in Jordan to about $160 million.

c. Though the generic market share declined 40%, their local market sales of generic drugs have increased, not decreased, to $75 million.

d. At time of reforms, only one Jordanian company was certified for Good Manufacturing Practices (GMP) (raising questions about the quality of generics before reforms). After reforms, at least four more Jordanian companies achieved international GMP certification.

e. Jordanian pharmaceutical exports have grown during the post-reform era from $49 million to more than $280 million.

f. Post-reform, Jordan has become the #1 Arab exporter of drugs, exporting 75% of their production to some 66 countries.

3. Oxfam states that the FTA conferred few benefits with respect to foreign direct investment, domestic R&D, or accelerating introduction of new, effective medicines.

Ryan responds:

a. Before IP reforms, no multinational drug innovator companies conducted clinical R&D in Jordan owing to the lack of patent and data protections and of an enabling regulatory environment.

About the author

Roy is Associate Counsel at BIO and the main contributor for Patently Biotech. He is a lawyer by training, with a background in international and national politics. He grew up in the developing world and believes that innovation can and does solve many of the world’s problems. Because of this, his work focuses on creating a worldwide policy environment that fosters innovation in the biotechnology sector to prevent and cure diseases such as HIV, to increase crop yields to feed more people, and to decrease the harmful effects of industry on the environment. Roy spends his free time keeping up with his three kids, a wife that knows everything (no joke), and serving in his church and broader community. Learn more about Roy from his Linkedin Profile.